The Minister of Industry criticizes Apple’s investment proposal of IDR 1.5 T: Does not fulfill the principles of justice

Jakarta –

Apple’s investment proposal of US$ 100 million or approximately Rp. 1.58 trillion (exchange rate Rp. 15,800) by the Ministry of Industry (Kemenperin). The Minister of Industry (Menperin) Agus Gumiwang assessed that the proposal did not meet the principles of justice.

“US$100 million based on a technical assessment does not meet the four principles of justice,” said Agus at the Ministry of Industry, last Monday.

The four aspects of justice mentioned are, Firstcomparison of Apple’s investment in countries other than Indonesia, where Apple currently has not invested in production facilities/factories in Indonesia. Secondcomparison of investment in other brands of mobile phones, laptops, tablets (HKT) in Indonesia.

Thirdadded value creation as well as national acceptance. Fourthjob creation in Indonesia. Therefore, Apple was asked to make additional investments based on these fair aspects.

“According to the management meeting today, a fair value has been determined for Apple to make an additional investment based on this fair aspect,” he said.

On the other hand, the Ministry of Industry still wants Apple to pay the remaining investment commitment​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​with the last calculation was at $ 10 million or about 158 ​​billion Rp. The remainder of this commitment is not part of the discussion of the new proposal of US$ 100 million.

And he explained that the discussion about the new proposal relates to Apple’s obligation for 2024-2026 to obtain a TKDN certificate. Apple is obliged to consider proposals every 3 years as a result of Apple’s investment decision to choose an innovation scheme to obtain TKDN certification.

The Ministry of Industry, through the Director General of ILMATE, will immediately call Apple to come to Indonesia to discuss the repayment of investment commitments in 2023 and new proposals for 2024-2026.

“The Ministry of Industry believes that it would be better for Apple to establish production facilities/factories in Indonesia immediately so that it does not have to submit investment scheme proposals every 3 (three) years, ” he explained.

Agus said that the Ministry of Industry has also started the process of considering a review of the Regulation of the Minister of Industry No. consider that HKT’s business landscape is very different and to adhere to the principles of fair investment.

For your information, Apple still cannot sell its latest product, the iPhone 16, in Indonesia because it is blocked by Domestic Component Rating (TKDN) issues. This is because Apple has not yet paid the remaining investment of approximately US$ 10 million or Rp 158 billion (Rp. 15,800 exchange rate) ​​of the total investment commitment of Rp.

According to And, the remaining investment of US $ 10 million is an obligation that Apple must fulfill for the period until 2023. Apple then offered a new investment proposal of US $ 100 million or Rp Paid US $ 10 million of it. And he emphasized that they were two different things.

(ly/hns)